Berkshire Hathaway's Shares Prior to Splitting

Kraft Heinz expected to divide into two separate corporations, causing an increase in stock prices prior to market opening.

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2025 September 15 . 7:28 PM

2 min read

Berkshire Hathaway's stock value prior to a potential stock dividend

Berkshire Hathaway's Shares Prior to Splitting

Kraft Heinz, the popular food and beverage company, has announced plans to split into two separate, publicly traded companies: Global Taste Elevation and North American Grocery. The move aims to reduce the complexity of the current structure and allow both companies to target their resources effectively.

The North American Grocery division will serve the North American market with beloved brands like Oscar Mayer, Kraft Singles, and Lunchables. Carlos Abrams-Rivera, the current CEO of Kraft Heinz, will lead this division.

On the other hand, Global Taste Elevation will focus on taste products like sauces, spreads, and spices, including brands such as Heinz, Philadelphia, and Kraft Mac & Cheese. A new CEO is being sought for this division due to the planned split.

The expected synergy losses due to the split could be up to $300 million, but these are expected to be largely offset in the short term. The split is necessary from a business perspective, but the specific reasons were not specified in the announcement.

Kraft Heinz (WKN: A14TU4) has been recommended as a buy by DER AKTIONÄR, with the stock surging by around two percent in pre-market trading on Tuesday. DER AKTIONÄR DAILY Newsletter provides updates on the latest developments in exciting companies and the stock market. It's a free daily newsletter from Germany's leading financial magazine. The reasons why the Kraft Heinz stock is attractive can be found in the current issue of DER AKTIONÄR.

The split of Kraft Heinz into two separate companies is expected to be completed in the second half of 2026, subject to board approval and regulatory clearance. Miguel Patricio, Executive Chair of Kraft Heinz, explained that the split is necessary to give the right attention and resources to each brand to fully unlock their potential.

In a statement, Patricio said, "We believe that this split will enable us to better allocate capital and focus on growth areas, ultimately creating long-term value for our shareholders." The company's decision comes as it faces increased competition and changing consumer preferences in the food industry.

As the split progresses, investors and consumers can look forward to seeing how these two companies will operate independently and how they will continue to shape the food industry in North America and around the world.